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Chappy

competitive pricing

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Today I checked on an estimate I gave for some paver sealing. besides the fact the customer was having sticker shock, (I hear that a lot) he said his 3 estimates were with in $5 of each other!!

Ive been preaching to every sealing contractor I see about how they can get higher prices, and it must be paying off.

Now that everyone is pricing properly, I can go undercut everyone.:sinister:

Haha!

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Jon, homeowners, myself included, never know what things cost. Some sticker shocks I've encountered.. Kitchen remodel $70K+.. New roof, $18K.. Rewiring a house.. $22K.. Entire interior repainting $16K. Things cost what they cost. One goal I try to achieve when selling a service is to upshift that mental number that people may have formulated in their head. If anyone says something about it being so expensive, I ask them what number they had in mind followed by how they came to that assumption. No matter how bizarre or misinformed the answer, empathy is always first and foremost. When someone is blown away by a price (rare), I stop the sale to let them digest.

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Jon... I think it comes down to good ol' fashion CLOSING when the prices are so similar like that.

If a customer were to tell me that, I would say something like "$5? Let's see, this sealer will last you for 5+ years (I'm guessing), so now that you have gotten other quotes like a responsible homeowner, which day works better for you, Tuesday, or Thursday?

If they balk at that, then say...

That's good that you want to think about it, Mr. Jones, because we are really busy and can't get here until next week so why don't we put you down for Thursday and if anything comes up, give me a call and we'll reschedule".

Then, send Thank you cards, coupons, etc... every couple of days reminding them why they went with the best! ;)

Edited by HotShot

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Competing against others with essentially the same price as you is where the "intangibles" come in. Professionally dressed (uniform), lettered vehicle, informative website, high ratings on services like Angie's List are what will get you the work - many times even if your price is higher.

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Actually, I am a pretty good salesman and do well overcoming objections IF THEY GIVE ME them.

Lately I have been trying to go over objections before they come up, sticker shock is a tough one. More often than not they just find a cheaper alternative and dont say anything to me about price. Paver sealing prices are all over the board here. I have a new deck competitor that is almost exactly half price. Roof cleaning prices are rediculous!

I sell my self, my service and my reputation and if I dont get it because of price, I move on.

Your right Full Blast. It is often who they like the best. I try to be that guy.

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and...

when/if they balk at the price, be sure to break it down to the rediculous and then compare it to something else that is relatible. Kind of like I did with my Burger King ads... the difference between what they were paying and what I would have been was basically a Whopper Meal per day.

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